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1 Will the Commissioner exercise his discretion pursuant to subsection 152-80(3) of the Income Taxation Assessment Act 1997 (ITAA 1997), to grant an extension of time to apply the small business capital gains tax concessions in relation to the capital gain that will arise on the disposal of the Property?

1 Yes . Having considered the reasons provided for the delay in the sale of the Property, the Commissioner will allow an extension of time, as there is evidence of an acceptable explanation for the period of extension requested and it would be fair and equitable in the circumstances to provide the extension. This ruling applies for the following period : Year ending 30 June 20XX The scheme commenced on: 1 July 20XX

The deceased held various properties in their personal name, including the property relevant to this application (the Property). The deceased passed away more than 2 years ago. The deceased was over 55 at the time of their passing. The deceased was survived by their children. Under the terms of the deceased's will and related documents, they intended to distribute the Property to their child (the Child). During the entire period of ownership by the deceased, the Property was used in a business operated by a related company of the deceased (the Company). For the two years prior to the passing of the deceased, the company had a turnover of less than 2 million. There are no other connected entities or affiliates that produced any turnover. The gap between the date of death and lodging the application for probate was due to the complexity of the Estate, the large number and value of assets involved, and the requirement to obtain valuations of multiple assets. Under the deceased's will, the Child was appointed as one of the executors of the Estate.

The will and related documents set out fixed percentage shares of the estate for each child, and it was requested that specific children were made entitled to specific assets. Where the value of a specific asset exceeded that child's fixed entitlement to the estate, that child was required to pay the difference to the Estate. After probate was granted, a dispute among the Children arose as to practicality of administration of the Estate. During the negotiations it became apparent that the Property to be distributed to the Child would be valued in excess of the Child's fixed entitlement to the Estate. The Child was required to seek borrowings to pay the estate the difference. The Child sought financial advice, and it was determined that the Child's family trust would purchase the property from the Estate. This was intended to occur within two years of the deceased's passing. Throughout the whole period external conditions being experienced by the executors and the children and their need to deal with their own personal and business affairs caused further delays. The Child passed away before their family trust acquired the Property.

This caused further delays in the proposed sale of the Property to the Child's family trust. As at the date of this application, the Child's executors have agreed to continue with the purchase of the Property by the Child's family trust, and finance has been approved. The contract for the disposal of the Property will be signed more than 2 years after the deceased's passing.

Income Tax Assessment Act 1997 paragraph 152-80(1)(d) Income Tax Assessment Act 1997 subsection 152-80(3)